Expanding Economic Inequality
In the United States
-In 2011, Congressional Budget Office reports that
top 1% of earners doubled their share of the
nation’s income over the last 3 decades;
-For lowest fifth of population, their % of the
nation’s income declined by 2 to 3 %
1
Increasing Segregation by Income
In 2012, the Pew Research Center reported that the
percentage of upper income households living in
segregated affluent communities doubled between
1980 and 2010, while the share of lower income
households living in mostly poor neighborhoods rose
from 23 to 28%
2
Changes in Wealth Distribution
• Executive Pay has quadrupled since the 70s
• In 1975, top .1% of population had 2.5% of
national income
• In 2008, top .1% had 10.4% of national income
3
Jobs in Manufacturing
• In 1960, 1/3 of all laborers were in
manufacturing (outside of agriculture); 62% of
those jobs were unionized.
• In 2010, 1/8 of all laborers were in
manufacturing; 13.6% were unionized.
-from Bureau of Labor Statistics
4
Increase in Temp Work
• 2.7 million workers are temp workers; highest
recorded # in U.S.
• 1/5th of job growth since recession ended in mid2009 has been in temp sector
• Largest growth in temp sector has been in blue
collar work; 1 in 20 blue collar workers are temps
• Temps generally earn 25% less than permanent
workers, have twice the rate of injuries, and less
access to benefits, pensions, etc.
- From ProPublica based on Labor Dept. stats from June 2013
5
MIT OpenCourseWare
http://ocw.mit.edu
21A.461 What is Capitalism?
Fall 2013
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